2026 tax year
ACA subsidy calculator
How much of your health insurance premium the government covers. And the cliff you can fall off.
The ACA premium tax credit caps what you pay for a benchmark health plan at a percentage of your income; the government covers the rest. In 2026 the enhanced subsidies expired and the hard 400%-of-poverty cliff returned, earning $1 over it drops the subsidy to zero. This estimates your credit from your income, household size and benchmark premium.
The second-lowest-cost silver plan for your household, from HealthCare.gov.
Enter your income, household and benchmark premium.
Worked example, a household of two at $40,000
With a benchmark silver plan costing $1,000 a month, and income at 186% of the poverty line:
| Figure | Amount |
|---|---|
| Income as a percent of the poverty line | 186% |
| Benchmark plan premium | $1,000/mo |
| What you pay after the credit | $200/mo |
| Monthly subsidy | $800/mo |
The credit covers $800 of the $1,000 premium, leaving this household $200 a month. Push the same household to $87,000, just over 400% of the poverty line. And the subsidy becomes $0: they pay the full $1,000. That is the cliff.
Questions
How is the subsidy calculated?
The law sets the most you should pay for the benchmark (second-lowest silver) plan as a percentage of your income, rising with income. Your credit is the benchmark premium minus that expected contribution. The credit follows the benchmark plan, but you can apply it to any metal-level plan.
What is the 400% cliff?
For 2026, households above 400% of the federal poverty line get no premium tax credit at all, a true cliff, not a phase-out. The 2021 to 2025 enhanced subsidies that removed the cliff were not extended past December 31, 2025, so it returned on January 1, 2026. One dollar of income can cost thousands.
What income does it use?
Modified adjusted gross income for your whole tax household, projected for the coverage year. Because it is a projection, a mid-year raise or a good freelance month can change your credit. And you reconcile the difference on your tax return, sometimes paying some back.
What is the benchmark premium?
The cost of the second-lowest-cost silver plan available to your household in your area. It sets the size of your credit even if you buy a cheaper or dearer plan. HealthCare.gov or your state exchange shows the exact figure for your zip code and ages, enter that for an accurate estimate.
Related tools
- 1099 tax calculator self-employed health premiums are also deductible
- Quarterly tax calculator projecting income for the year
- By profession self-employment and coverage
Estimate for the 2026 tax year. Your actual credit uses the benchmark premium for your exact plan and area. Not tax or health-coverage advice.